An Internal Revenue Service Form W-9, Request for Taxpayer Identification Number, is an informational form that employers and prime contractors use to collect information they need to process their payroll. The form also verifies that the prospective employee is legally authorized to work in the United States.

W-9 Form Recipients

Employers and prime contractors should furnish an IRS W-9 form to all new employees, as well as all new subcontractors or vendors. Technically, the IRS uses the term "U.S. persons," but corporations are legal persons under the law. Provide a Form W-9 to partnerships, corporations and associations from whom you plan to purchase goods and services for your business.

Information on the W-9

The recipient of the W-9 form fills out the personally identifying information at the top of the form and checks the appropriate block, indicating whether the recipient is doing business as a sole proprietor, partnership, corporation, limited liability, trust or estate.

Foreign Persons

Since foreigners and foreign companies don't have a Social Security or taxpayer identification number, they don't receive a W-9 form. Instead, give them a Form W-8, which collects information specifically about foreign entities.

Recordkeeping

You do not normally need to send the IRS a copy of the Form W-9. Instead, keep the completed form in your records. You will need it at the end of the year, when you fill out your Form W-2s for your employees and Form 1099s for independent contractors and vendors. You can use an electronic W-9 or create your own form W-9, as long as it contains the same information as the IRS Form W-9.